Dynamo Dispatch (2025/03/03)
Issue 321 | Highstock, Relay, Shop Circle
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
If you’re headed out to SXSW this weekend in Austin, make sure you catch Dynamo portfolio company Importal on the pitch stage! They’ll be showcasing how to navigate the complexities of tariffs and regulatory changes of international trade.
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Supply Chain 📦
⭐ Chinese Ship Fees Open New Front in US Trade War. The US is ramping up its trade war with China by targeting shipbuilding and maritime trade, proposing hefty fees on Chinese-built vessels entering US ports and gradually increasing requirements for American exports to be carried on US-built and -operated ships. This initiative, supported by both political parties and labor unions, aims to bolster national security and revive the struggling US shipbuilding industry, which currently ranks 19th globally. However, critics warn that these measures could drive up costs for American businesses and consumers, adding further disruption to global supply chains.
Numerous Risk Factors Threatening to Slow Robust Air Cargo Demand. The global air freight industry faces tight capacity and elevated rates in 2025, but risks such as trade tensions, the removal of de minimis exemptions in the US and Europe, and geopolitical instability are creating uncertainty. While e-commerce demand remains strong, policy changes impacting low-value Chinese imports could disrupt volumes. Logistical challenges like Russian airspace restrictions and cargo imbalances are also adding cost pressures. Despite some optimism from IATA due to trade growth and lower fuel costs, experts warn that tariff-driven policies and economic headwinds could significantly impact air cargo demand. For more, Has the eCommerce Bubble Burst for Air Cargo? and Airfreight Shippers Told to Delay Contracts as US CBP Clarifies China Rules.
Next Phase of Digital Forwarding on Collision Course with AI Revolution. The freight forwarding industry is entering a new phase of digital transformation, driven by AI advancements, with major players like Flexport and WiseTech Global integrating AI-powered tools to enhance efficiency and customer experience. However, challenges remain, as AI adoption requires significant logistics-specific data, and some digital forwarders, like Forto, have struggled due to high valuations and market downturns. Meanwhile, a new wave of AI-driven startups is emerging, rapidly building specialized solutions, signaling another attempt by venture capital to disrupt global logistics through AI innovation. Related, Flexport CEO: ‘Every Single Member On Your Team Should Be Using AI’.
Chinese Manufacturers Speed Up Efforts to Dodge Trump Tariffs. Facing new US tariffs, Chinese manufacturers like Agilian Technology are accelerating efforts to shift production to Southeast Asia to avoid rising costs and maintain access to the American market. Many companies that previously adopted a “China plus one” strategy are now expanding operations in Vietnam, Malaysia, and Cambodia, though China's advanced infrastructure keeps some production tied to the country. However, Trump’s unpredictable trade policies make long-term investment decisions risky, as companies fear sudden policy shifts or expanded tariffs on other nations. Related, China Vows to Retaliate as Necessary After Trump Threatens Another 10% Tariff Hike and Borderlands Mexico: Mapping Supply Chains Key to Surviving Tariff Wars, Experts Say.
AI’s Supply Chain Potential Among Manifest 2025 Takeaways. Companies like Target and Unilever are increasingly leveraging AI for inventory management and forecasting, but supply chains still struggle with maintaining clean, actionable data. At Manifest 2025, industry leaders highlighted the impact of global trade shifts, digitization, and climate-conscious regulations on supply chain transformation. While AI adoption is accelerating, experts emphasized the need for better data transparency and shared standards to maximize its potential. Related, An 'Anxiety Doom Spiral' Appears as AI Advances in Supply Chains.
Mobility 🚗
⭐ Tesla Sets Sights on Waymo, Uber in California Ride-Hail Bid. Tesla has applied for a permit in California to operate a ride-hailing service, signaling a move to diversify its business amid slowing EV sales. While Elon Musk has long promised a fully autonomous ride-hailing fleet, the application suggests Tesla will initially use human drivers, potentially paving the way for future robotaxi operations. The company faces regulatory hurdles, particularly in California, where competitors like Waymo already operate driverless fleets under stricter state oversight. It’s a big bet for Tesla on AV in a new business model as the automaker begins seeing signs of sluggish sales in key markets.
Stellantis Urges Trump to Aim Tariffs at Parts Content. Stellantis Chairman John Elkann urged the Trump administration to target tariffs on imported vehicles with little US content rather than imposing broad levies on Canada and Mexico. The automaker, struggling with weak sales and leadership turmoil, reported a sharp drop in profitability and market share particularly in North America and Europe. Stellantis is attempting to revive its US business with new models while undergoing a leadership transition after former CEO Carlos Tavares was ousted. Despite ongoing challenges, the company is remains positive, but needs to navigate the quick changing political and regulatory changes. On the topic of parts, Ford Recalls 240K SUVs For Loose Seat Belt Bolts.
Volvo Weighs Increasing US Production, Domestic Sourcing to Offset Tariffs. Volvo is considering expanding US production and sourcing more domestic suppliers to offset higher tariffs, particularly on EV batteries imported from China. CEO Jim Rowan highlighted the company’s ability to scale up operations at its South Carolina plant that produces the all-electric EX90 SUV, while also seeking a US-based battery supplier. The automaker faces rising costs due to new tariffs imposed by the Trump administration, including a potential 35% duty on Chinese battery imports and increased levies on vehicle imports from Europe. Like other automakers, Volvo is strategizing ways to navigate these trade barriers while continuing its push toward an electrified future. As for one of its partner, Polestar Secures $450M Loan Amid Weak Demand and Delayed Earnings Reports.
Nissan Could Replace CEO Amidst Dismal Earnings, Failed Merger. Nissan is reportedly considering replacing CEO Makoto Uchida as the fallout from its failed merger with Honda intensifies. A recent report suggests the company’s board is seeking new leadership to streamline management, with an announcement expected on March 12, though other reports Uchida may remain in his role. Nissan faces mounting financial pressure, with an anticipated $534M loss, declining US sales, and recent layoffs. While the automaker remains open to new partnerships, Honda has also signaled a willingness to revisit merger talks, leaving Nissan’s future direction uncertain. In other leadership shakeups, Lucid CEO Peter Rawlinson Steps Down As New Platform Launch Looms.
Volkswagen And CATL Partnership Aims To Develop Better EV Batteries. Volkswagen has deepened its partnership with China’s CATL, the world’s largest EV battery manufacturer, to advance battery research, cost reduction, and new material applications. The collaboration aims to enhance vehicle-to-grid functionality, improve supply chain transparency, reduce emissions, and expand lithium-ion battery recycling. Notably, VW and CATL are also exploring large-scale battery swapping, which could significantly reduce EV charging times and increase adoption in markets where home charging is impractical. With separate battery-sourcing agreements signed with VW’s Chinese joint ventures, this strengthened alliance could give Volkswagen a competitive edge in the rapidly evolving EV market. Related, Kia Launches Smart Charging Offer in the US and the Netherlands.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
Vidyut Raises $2.5M in Funding. Vidyut is an India-based EV ecosystem platform offering a Battery-as-a-Service model to reduce upfront EV costs for businesses. The funding will be used to expand its financing and lifecycle solutions across passenger and commercial EV segments. Flourish Ventures led the round.
Qrago Secures €2.7M in Seed Funding. Qrago is a provider of software solutions for healthcare logistics and patient transport, optimizing the movement of patients, laboratory samples, and medical materials. The funding will support expansion in the DACH region and the growth of its logistics services. āltitude and MobilityFund led the round, with participation from Segenia Capital and capacura.
DocUnlock Raises $3M in Pre-Seed Funding. DocUnlock automates customs brokers paperwork for importers by using AI to extract and process unstructured data from emails and documents. The funding will be used to enhance its platform and expand its customer base. GTMFund and Barrel Ventures led the round.
Mitico Raises $4.3M in Seed Funding. Mitico is developing a cost-effective carbon capture technology using modified potassium carbonate pebbles to remove CO₂ from industrial emissions. The funding will be used to scale pilot projects, starting with industrial boilers before expanding to natural gas power plants. Exergon led the round, with participation from AP Ventures, Deepbright Ventures, Freeflow Ventures, Halliburton Labs, Alliance SoCal for Innovation, and SOSV.
Firstwork Raises $5M in Seed Funding. Firstwork is an AI-powered workforce management platform for frontline workers. The funding will be used to expand operations and business reach. The round was led by Gradient, with participation from YC, SOMA Capital, 468 Capital, and Houghton Street Ventures.
Highstock Raises $5.5M in Seed Funding. Highstock is a global platform that connects brands with excess inventory to discount buyers, offering a transparent and tech-driven alternative to traditional brokers. The funding will be used to expand into new product categories beyond personal care and grow its network of international buyers. Greylock led the round, with participation from Instacart co-founder Max Mullen.
Rune Technologies Raises $6.2M in Seed Funding. Rune Technologies is a defense tech startup developing AI-driven logistics software for military operations in contested environments. The funding will be used to scale its engineering and product teams and advance its logistics operating system. Andreessen Horowitz led the round, with participation from Point72 Ventures and XYZ Venture Capital.
Cambium Raises $18.5M in Series A Funding. Cambium is a timber supply chain platform that salvages wood waste and connects suppliers, mills, and buyers through AI-driven logistics. The funding will be used to enhance its software, expand AI capabilities, and scale its network. VoLo Earth Ventures led the round, with participation from 81 Collection, Alumni Ventures, Dangerous Ventures, Groundswell, MaC Venture Capital, NEA, Rise of the Rest, Soma Capital, Tunitas Ventures, Ulu Ventures, Understorey, and Woven Earth.
VerAI Raises $24M in Series B Funding. VerAI is leveraging AI to identify buried mineral deposits needed for advanced manufacturing and renewable energy. The funding will be used to accelerate testing and development of its projects. Insight Partners led the round and was joined by Blumberg Capital, Chrysalix Venture Capital, and Orion Industrial Ventures.
CompScience Raises $27.6M in Series B Funding. CompScience is an AI-driven insurtech company that enhances workplace safety through its visual AI platform. The funding will be used to enhance AI capabilities, expand insurer partnerships, and scale into new industries. Sands Capital led the round, with participation from Four More Capital, Working Capital, and Valor Equity Partners.
Gozem Raises $30M in Series B Funding. Gozem is a West African super app offering ride-hailing, vehicle financing, commerce, and digital banking. The funding will be used to scale its vehicle financing services and expand into new markets. SAS Shipping Agencies Services and Al Mada Ventures led the round, with participation from international lenders and the International Finance Corporation (IFC).
Skylo Raises $30M in Venture Funding. Skylo is a provider of direct-to-device satellite connectivity for smartphones, IoT devices, and vehicles. The funding will support Skylo’s expansion into Brazil, Australia, and New Zealand, along with further scaling its network across five continents. The round was led by NGP Capital, with participation from Westly Group, Intel Capital, BMW i Ventures, Samsung Catalyst Fund, and Next47.
Relay Raises $35M in Series A Funding. Relay is an AI-powered parcel delivery platform that optimizes last-mile logistics using an asset-free model with local mini-depots and carbon-reducing eBikes. The funding will be used to scale operations across the UK and expand partnerships with major eComm platforms. Plural led the round, with participation from Project A and Prologis Ventures.
Nomagic Raises $44M in Series B Funding. Nomagic provides AI-powered robotic systems for warehouse picking, packing, and sorting. The funding will support European expansion and further AI development. The European Bank for Reconstruction and Development led the round, with participation from Khosla Ventures, Almaz Capital, and the European Investment Bank.
Shop Circle Raises $60M in Series B Funding. Shop Circle is an eComm software platform that integrates AI-driven solutions for product discovery, up-selling, review management, and inventory optimization. The funding will be used to scale operations and expand product offerings. Nextalia Ventures led the round, with participation from Endeavor Catalyst, NFX, QED Investors, 645 Ventures, 3VC, and i80 Group.
Tenstreet Acquires TextLocate. Tenstreet provides fleets with driver recruiting, hiring, and retention services while monitoring safety, compliance, and fuel spend. TextLocate provides real-time load visibility with two-way chats and check calls with drivers. The combined functionality of the two platforms is expected to augment communications throughout the supply chain, improving relationships and adding new efficiencies.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Founding Sales at Guided Energy in Paris, France / London, U.K.
Full Stack Software Engineer at Steam Logistics in Chattanooga, TN.
VP Finance at Solvento in Ciudad de Mexico, Mexico.